Key Points
- Ethereum’s transaction volumes have fallen by 70% as the Ethereum Foundation continues to sell off.
- The price of Ethereum is testing its crucial support level at $3,000 amid a wider crypto market downturn.
The total crypto market cap is currently at a low point of $3.31 trillion, with the crypto market liquidation reaching $860 million. The largest altcoin, Ethereum, has seen a drop of nearly 7%, pushing it towards its crucial support level of $3,000.
Bullish bets in the market are losing value, with losses nearing $800M. Traders of Ethereum are left wondering about the next move from the $3,000 crossroads. Many are questioning whether the ongoing crash will result in a closing price under $3,000 for the first time in 2025.
Ethereum Foundation Continues Selling Off
In the midst of the broader market crash and declining Ethereum prices, the Ethereum Foundation continues to sell off. In the last few hours, the foundation has sold another batch of 100 Ethereum tokens. The average price was $3,078.93, and the exchange was made for 307,893 DAI tokens. With this recent offloading, the total amount of Ethereum tokens sold by the Ethereum Foundation in 2025 amounts to 300 ETH for 980,388 DAI tokens.
Impact on the Ethereum Network
The major crash in Ethereum prices has also had a significant impact on the Ethereum network. The number of large transactions over the Ethereum network has dropped from 12.36K to 4.8L, marking a significant decline of 61.17%. Furthermore, the large transaction volume has dropped from 3.43 million ETH tokens to 1.05 million ETH tokens, marking a nearly 70% decline in transaction volumes.
With such a massive decline in whale activity over the network, the demand for Ethereum is likely to decrease in the broader market. This could potentially push the market value down under the immediate support of $3,000.
In the 4-hour chart, the ETH price action reveals a bullish failure to hold the consolidation near the $3,300 mark. Amid the broader market crash, the Ethereum price trend created three massive bearish engulfing candles to test the $3,000 mark. These three bearish candles account for a price drop of nearly 10%. Furthermore, it creates a triple black crow pattern hinting at an extended crash.
The pullback in ETH price has breached the recent low near $3,145 to test the psychological mark. With a lower price rejection and Doji candle, Ethereum is hinting at a potential morning star. This minor bullish reversal could come as a retest of the broken $3,145 price level. However, with the RSI line crashing into the oversold zone and the crucial exponential moving average lines maintaining a bearish alignment, the downfall seems inevitable.
With a post-retest reversal, the downfall in Ethereum price could test the previous swing low at $2,913. For a sustained bullish recovery, the ETH price must surpass the $3,200 barrier. This will likely result in a price surge to the 200 EMA line near $3,358 or an extension to $3,475.
